Iowa and a rally

Trump will make a solid premeditated comeback in New Hampshire as Cruz begins to face legal questions over his ineligibility to become a US president, under Article 2 of the US Constitution, and SEC campaign finance violations pertaining to his Fed window rate, US Senate loan. Hey, we don't just predict markets around here.

Since I have an actual job that requires me to go out and move stuff around, instead of sitting in front of charts day in and out, I have no idea why markets sold off toady, nor do I care since price has moved into my 'Sunday fallback levels' of  SPX 1894 and DJI 16040.

Never ask why or when markets move. Only be happy they do move and be ready with appropriate buy or sell orders.

Today's sell off should be the end of down pressure for a while, meaning institutions have shaken all the ignorant, squeamish, knee-knocking (you know who you are) players form their fragile branches of market indecision allowing the real rally to begin. What's my proof? Have a look at the DOW and S&P.

What are my supporting indicators, you ask? How about the falling USD and US 10 year? Oh, Oil broke $30 today? Well, that could be an issue, which is why we have to, as professional market speculators, be willing to abandon a non-working thesis and adopt its polar opposite. Markets are not politics, values, history, religion, or culture. If you're wrong, admit it, get the fork out of a bleeding position, and look for the next opportunity.

As for now, however, negative and positive correlating indicators have not turned over. A weak yield and a weak USD directly correlates to rising equities prices. Unless, that is, all of the world's risk assets are tied to falling oil prices. Then we'll have a much lower than expected market for a much longer than expected amount of time.

Happy trading.